MCLEAN, Va. — PowerHouse Data Centers secured a 30-year lease agreement with CyrusOne Inc. for the entire spec-built data center, ABX-1, located in Ashburn, Virginia. PowerHouse is a joint venture between American Real Estate Partners (AREP) and Harrison Street, one of the leading investment management firms exclusively focused on alternative real assets, that offers powered shell and build-to-suit data center solutions.
Substantial completion of this inaugural purpose-built data center is scheduled for October.
"Now, more than ever, hyperscalers and operators are looking for real estate solution providers to handle everything from land identification and acquisition to data center design and construction," said Doug Fleit, co-founder and CEO of AREP and PowerHouse.
PowerHouse Data Centers remains well-positioned to take advantage of skyrocketing leasing demands. ABX-1 is just the first of PowerHouse's six data center build sites, representing 2.1 million square feet of data center space under construction in Loudoun County. Currently offering two additional campus opportunities in the world's most robust data center market, PowerHouse is disrupting the status quo by overcoming limiting land and market challenges in within the Northern Virginia region.
"This transaction demonstrates the value of ABX-1's strategic location within Data Center Alley and Powerhouse's commitment to further provide innovative high-performance solutions to its hyperscale customers," said Rob Walters, principal at Avison Young.
The construction for ABX-1 is backed by a joint venture between AREP and Harrison Street to develop world-class data centers.
"Northern Virginia is the most active data center market in the world and we are excited to be able to deliver data center solutions to end users and operators, such as CyrusOne, to fit-out and support their customers," said Michael Hochanadel, managing director and head of digital assets for Harrison Street. "We look forward to working closely with PowerHouse to develop more data centers in the region."
Harrison Street is one of the leading investment management firms focused exclusively on alternative real assets. The firm has committed approximately $3 billion in digital network infrastructure assets, including powered shell data centers, colocation facilities, carrier hotels, and dark fiber providers.
PowerHouse Data Centers worked hand in hand with Dominion Energy to secure bridging power to the site while also planning the development of a unique GIS on-site substation. ABX-1 will eventually feature the 300-MW substation, which will deliver more than 60 MW of power to the facility, with the rest available for the surrounding area. The substation commenced construction in February and is expected to be energized by the end of 2025.
"Without Dominion Energy's strong commitment to our site and dedicated partnership, we wouldn't be where we are today," Fleit says. "We are focused on addressing rising data center demand, and we are fortunate to have a power partner in Dominion Energy that works tirelessly to deliver power solutions to the broader community."
In addition to Dominion Energy, strategic partners for ABX-1 include DPR Construction, Corgan, kW Mission Critical Engineering, Avison Young, and Appleby Strategies Group.